Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets.The opportunity cost to Jeff of going to an extra hockey game is
A)four fewer $10 pizzas.
B)five movies.
C)20 DVD rentals (costing $2 each).
D)all of the choices are true.

Question

Quizplus · Accepted Answer

Since Jeff's entertainment budget is divided between $8 movie tickets and $40 hockey tickets, the opportunity cost of going to an extra hockey game can be calculated as follows: 
1 hockey ticket = $40
5 movie tickets = $40 (since each movie ticket costs $8)
Therefore, the opportunity cost of going to an extra hockey game is missing out on 5 movies. Therefore, the best choice is B: five movies.

Jeff's Entertainment Budget Is Divided Between $8 Movie Tickets and $40